It begs the question, if an emergency struck now, how would you pay for it – would you turn to your credit cards or ask that generous rich friend to bail you out?

Ochse says one should always consider the possibility of unforeseen circumstances when saving.

“Emergency happens so you need to have funds available so that you can pay for that,” he explains.

Ochse says besides guarding one’s future, saving smartly would also enable one to create generational wealth: “This is a very emotional side of it. If you do this properly, you can potentially leave a legacy for the next generation of your family.”